This automobile-tractor stock crashed by 3 percent after the company reported negative sales growth of tractors by 11 percent in the month of September.
At 10.42, 3rd october shares of Escorts kubota Ltd were trading at Rs. 3076.30 per share which is down by 3.42 percent from the previous closing price of Rs. 3185.10 per share.
Such a downfall in stock price is observed after the company reported tractor sales are down by 11.2 percent domestically, the company sold 10,114 tractors in September 2024 which is 11.2 percent less compared to September 2023 in which they sold 11,384 tractors.
Company’s exports also declined by 11.9 percent from 848 tractors in September 2023 to 747 tractors in September 2024. Overall sales declined by 11.2 percent from 12,232 tractors in September 2023 to 10,861 tractors in September 2024.
Looking at the financial statements of the company, revenue from operations is increased by by 15.9 percent YOY to Rs. 2355.17 crores in Q1FY24 from Rs. 2032.06 crore in Q1FY23, in the same time period company’s net profit increased by 106.13 percent to Rs. 289.9 crore in Q1FY24 from Rs. 140.64 crore in Q1FY23.
Talking about the financial ratios, the company reported return on equity (ROE) of 8.08 percent and return on capital employed (ROCE) of 10.74 percent in the last financial year.
Escorts Kubota Limited formerly Escorts Limited (NS: ESCO ) is one of India’s leading engineering conglomerates engaged in manufacturing agricultural machinery, construction machinery, material handling, and railway equipment. Company’s 93 percent revenue comes from India and other 7 percent from outside India.
Written by: Vinit israni
The post Midcap stock falls 4% after company reports 11.2% decrease in sales YoY; Check the details appeared first on Trade Brains.
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